CK Hutchison (HKG:0001) soared 22% after it entered into a preliminary contract with three US firms regarding the sale of all shares in Hutchison Port and Hutchison Port Group, a Tuesday filing with the Hong Kong bourse said.

The parties have also reached an agreement in-principle regarding the purchase by BlackRock, Global Infrastructure Partners, and Terminal Investment of Hutchison Port's 90% equity interest in Panama Ports, which owns and operates the ports of Balboa and Cristobal in Panama.

The deal is being praised by US President Donald Trump as it will give control of key Panama Canal ports to the conglomerate of US buyers, which aligns with the US government's goal to remove them from "Chinese ownership," Reuters reported.

The move comes amid intensifying trade tensions between China and the US, the two largest economies in the world.

The two target companies together hold the entire 80% effective interest of the company in the Hutchison Ports group, which in turn holds interests in subsidiaries and associates that own, operate, and develop 43 ports comprising 199 berths in 23 countries.

The scope of the sale contract does not include any interest in the Hutchison Port Holdings Trust, which operates ports in Hong Kong and Shenzhen, South China, or any other ports in Mainland China.

The company will hold exclusive negotiations with the three parties for 145 days to finalize the definitive terms and documents under the agreement.